diff --git a/scripts/pylib/twister/twisterlib/coverage.py b/scripts/pylib/twister/twisterlib/coverage.py
index dd647c60ddc347..da3c6a3eb17439 100644
--- a/scripts/pylib/twister/twisterlib/coverage.py
+++ b/scripts/pylib/twister/twisterlib/coverage.py
@@ -132,6 +132,30 @@ def create_gcda_files(self, extracted_coverage_info):
                 gcda_created = False
         return gcda_created
 
+    def generate_testsuite(self, testsuite_name, outdir):
+        coverage_completed = True
+        for filename in glob.glob(f"{outdir}/**/handler.log", recursive=True):
+            gcov_data = self.__class__.retrieve_gcov_data(filename)
+            capture_complete = gcov_data['complete']
+            extracted_coverage_info = gcov_data['data']
+            if capture_complete:
+                gcda_created = self.create_gcda_files(extracted_coverage_info)
+                if gcda_created:
+                    logger.debug(f"Gcov data captured: {filename}")
+                else:
+                    logger.error(f"Gcov data invalid for: {filename}")
+                    coverage_completed = False
+            else:
+                logger.error(f"Gcov data capture incomplete: {filename}")
+                coverage_completed = False
+
+        with open(os.path.join(outdir, "coverage.log"), "a") as coveragelog:
+            ret = self._generate(outdir, coveragelog, testsuite_name=testsuite_name)
+            if ret != 0:
+                coverage_completed = False
+        logger.debug(f"Testsuite coverage data processed: {coverage_completed}")
+        return coverage_completed
+
     def generate(self, outdir):
         coverage_completed = True
         for filename in glob.glob(f"{outdir}/**/handler.log", recursive=True):
@@ -182,6 +206,9 @@ def generate(self, outdir):
         logger.debug(f"All coverage data processed: {coverage_completed}")
         return coverage_completed
 
+    def merge_coverage(self, outdir):
+        logger.error("Merge coverage not implemented for %s", self)
+        return False
 
 class Lcov(CoverageTool):
 
@@ -261,24 +288,34 @@ def run_lcov(self, args, coveragelog):
         ] + parallel + args
         return self.run_command(cmd, coveragelog)
 
-    def _generate(self, outdir, coveragelog):
+    def _generate(self, outdir, coveragelog, testsuite_name=None):
         coveragefile = os.path.join(outdir, "coverage.info")
         ztestfile = os.path.join(outdir, "ztest.info")
 
         cmd = ["--capture", "--directory", outdir, "--output-file", coveragefile]
-        self.run_lcov(cmd, coveragelog)
+        if testsuite_name:
+            invalid_chars = re.compile(r"[^A-Za-z0-9_]")
+            cmd.append("--test-name")
+            cmd.append(invalid_chars.sub("_", testsuite_name))
+        ret = self.run_lcov(cmd, coveragelog)
+        if ret != 0:
+            return ret
 
         # We want to remove tests/* and tests/ztest/test/* but save tests/ztest
         cmd = ["--extract", coveragefile,
                os.path.join(self.base_dir, "tests", "ztest", "*"),
                "--output-file", ztestfile]
-        self.run_lcov(cmd, coveragelog)
+        ret = self.run_lcov(cmd, coveragelog)
+        if ret != 0:
+            return ret
 
         if os.path.exists(ztestfile) and os.path.getsize(ztestfile) > 0:
             cmd = ["--remove", ztestfile,
                    os.path.join(self.base_dir, "tests/ztest/test/*"),
                    "--output-file", ztestfile]
-            self.run_lcov(cmd, coveragelog)
+            ret = self.run_lcov(cmd, coveragelog)
+            if ret != 0:
+                return ret
 
             files = [coveragefile, ztestfile]
         else:
@@ -286,9 +323,11 @@ def _generate(self, outdir, coveragelog):
 
         for i in self.ignores:
             cmd = ["--remove", coveragefile, i, "--output-file", coveragefile]
-            self.run_lcov(cmd, coveragelog)
+            ret = self.run_lcov(cmd, coveragelog)
+            if ret != 0:
+                return ret
 
-        if 'html' not in self.output_formats.split(','):
+        if 'html' not in self.output_formats.split(',') or testsuite_name is not None:
             return 0
 
         cmd = ["genhtml", "--legend", "--branch-coverage",
@@ -296,6 +335,41 @@ def _generate(self, outdir, coveragelog):
                "-output-directory", os.path.join(outdir, "coverage")] + files
         return self.run_command(cmd, coveragelog)
 
+    def merge_coverage(self, outdir):
+        logger.info("Merging coverage files...")
+        with open(os.path.join(outdir, "coverage.log"), "a") as coveragelog:
+            coveragefile = os.path.join(outdir, "coverage.info")
+            ztestfile = os.path.join(outdir, "ztest.info")
+
+            # Merge all the coverage.info files into one
+            cmd = ["--output-file", coveragefile]
+            for filename in glob.glob(f"{outdir}/**/coverage.info", recursive=True):
+                cmd.append("--add-tracefile")
+                cmd.append(filename)
+            ret = self.run_lcov(cmd, coveragelog)
+            if ret != 0:
+                return False
+
+            # Merge all the ztest.info files into one
+            cmd = ["--output-file", ztestfile]
+            for filename in glob.glob(f"{outdir}/**/ztest.info", recursive=True):
+                cmd.append("--add-tracefile")
+                cmd.append(filename)
+            ret = self.run_lcov(cmd, coveragelog)
+            if ret != 0:
+                return False
+
+            if 'html' not in self.output_formats.split(','):
+                return True
+
+            # Generate html report
+            cmd = ["genhtml", "--legend", "--branch-coverage",
+                "--prefix", self.base_dir, "--show-details",
+                "-output-directory", os.path.join(outdir, "coverage"),
+                coveragefile, ztestfile]
+            ret = self.run_command(cmd, coveragelog)
+            return ret == 0
+
 
 class Gcovr(CoverageTool):
 
@@ -343,7 +417,7 @@ def _interleave_list(prefix, list):
     def _flatten_list(list):
         return [a for b in list for a in b]
 
-    def _generate(self, outdir, coveragelog):
+    def _generate(self, outdir, coveragelog, testsuite_name=None):
         coveragefile = os.path.join(outdir, "coverage.json")
         ztestfile = os.path.join(outdir, "ztest.json")
 
@@ -404,6 +478,11 @@ def _generate(self, outdir, coveragelog):
 
 
 def run_coverage(testplan, options):
+    coverage_tool = make_coverage_tool(testplan, options)
+    coverage_completed = coverage_tool.generate(options.outdir)
+    return coverage_completed
+
+def make_coverage_tool(testplan, options):
     use_system_gcov = False
     gcov_tool = None
 
@@ -456,5 +535,4 @@ def run_coverage(testplan, options):
     # Ignore branch coverage on __ASSERT* macros
     # Covering the failing case is not desirable as it will immediately terminate the test.
     coverage_tool.add_ignore_branch_pattern(r"^\s*__ASSERT(?:_EVAL|_NO_MSG|_POST_ACTION)?\(.*")
-    coverage_completed = coverage_tool.generate(options.outdir)
-    return coverage_completed
+    return coverage_tool
diff --git a/scripts/pylib/twister/twisterlib/environment.py b/scripts/pylib/twister/twisterlib/environment.py
index e64fb6934460ad..3e3d3bfc9ac08b 100644
--- a/scripts/pylib/twister/twisterlib/environment.py
+++ b/scripts/pylib/twister/twisterlib/environment.py
@@ -345,6 +345,9 @@ def add_parse_arguments(parser = None) -> argparse.ArgumentParser:
     parser.add_argument("-C", "--coverage", action="store_true",
                         help="Generate coverage reports. Implies "
                              "--enable-coverage.")
+    parser.add_argument("--coverage-by-testsuite", action="store_true",
+                        help=("Generate coverage data per testsuite, then merge. "
+                              "Requires --coverage."))
 
     parser.add_argument(
         "-c", "--clobber-output", action="store_true",
diff --git a/scripts/pylib/twister/twisterlib/runner.py b/scripts/pylib/twister/twisterlib/runner.py
index 8f368d202f63de..6368d552aa4c59 100644
--- a/scripts/pylib/twister/twisterlib/runner.py
+++ b/scripts/pylib/twister/twisterlib/runner.py
@@ -880,7 +880,7 @@ def parse_generated(self, filter_stages=None):
 
 class ProjectBuilder(FilterBuilder):
 
-    def __init__(self, instance: TestInstance, env: TwisterEnv, jobserver, **kwargs):
+    def __init__(self, instance: TestInstance, env: TwisterEnv, jobserver, coverage_tool, **kwargs):
         super().__init__(
             instance.testsuite,
             instance.platform,
@@ -895,6 +895,7 @@ def __init__(self, instance: TestInstance, env: TwisterEnv, jobserver, **kwargs)
         self.options = env.options
         self.env = env
         self.duts = None
+        self.coverage_tool = coverage_tool
 
     @property
     def trace(self) -> bool:
@@ -1131,6 +1132,8 @@ def process(self, pipeline, done, message, lock, results):
                 self.instance.handler.duts = None
 
                 next_op = 'report'
+                if self.coverage_tool is not None:
+                    next_op = 'coverage'
                 additionals = {
                     "status": self.instance.status,
                     "reason": self.instance.reason
@@ -1146,6 +1149,34 @@ def process(self, pipeline, done, message, lock, results):
             finally:
                 self._add_to_pipeline(pipeline, next_op, additionals)
 
+        # Run the generated binary using one of the supported handlers
+        elif op == "coverage":
+            try:
+                logger.debug(f"collect coverage: {self.instance.name}")
+                coverage_ok = self.coverage_tool.generate_testsuite(
+                    self.instance.name, self.instance.build_dir)
+
+                if not coverage_ok:
+                    self.instance.status = TwisterStatus.ERROR
+
+                # to make it work with pickle
+                self.instance.handler.thread = None
+                self.instance.handler.duts = None
+
+                next_op = 'report'
+                additionals = {
+                }
+            except StatusAttributeError as sae:
+                logger.error(str(sae))
+                self.instance.status = TwisterStatus.ERROR
+                reason = 'Incorrect status assignment'
+                self.instance.reason = reason
+                self.instance.add_missing_case_status(TwisterStatus.BLOCK, reason)
+                next_op = 'report'
+                additionals = {}
+            finally:
+                self._add_to_pipeline(pipeline, next_op, additionals)
+
         # Report results and output progress to screen
         elif op == "report":
             try:
@@ -1803,6 +1834,10 @@ def __init__(self, instances, suites, env=None) -> None:
         self.jobs = 1
         self.results = None
         self.jobserver = None
+        self.coverage_tool = None
+
+    def set_coverage_tool(self, coverage_tool):
+        self.coverage_tool = coverage_tool
 
     def run(self):
 
@@ -1966,7 +2001,8 @@ def pipeline_mgr(self, pipeline, done_queue, lock, results):
                             break
                         else:
                             instance = task['test']
-                            pb = ProjectBuilder(instance, self.env, self.jobserver)
+                            pb = ProjectBuilder(instance, self.env,
+                                self.jobserver, self.coverage_tool)
                             pb.duts = self.duts
                             pb.process(pipeline, done_queue, task, lock, results)
                             if self.env.options.quit_on_failure and \
@@ -1984,7 +2020,7 @@ def pipeline_mgr(self, pipeline, done_queue, lock, results):
                         break
                     else:
                         instance = task['test']
-                        pb = ProjectBuilder(instance, self.env, self.jobserver)
+                        pb = ProjectBuilder(instance, self.env, self.jobserver, self.coverage_tool)
                         pb.duts = self.duts
                         pb.process(pipeline, done_queue, task, lock, results)
                         if self.env.options.quit_on_failure and \
diff --git a/scripts/pylib/twister/twisterlib/twister_main.py b/scripts/pylib/twister/twisterlib/twister_main.py
index 9d4485c885ea04..406b0ec928bc17 100644
--- a/scripts/pylib/twister/twisterlib/twister_main.py
+++ b/scripts/pylib/twister/twisterlib/twister_main.py
@@ -12,7 +12,7 @@
 
 import colorama
 from colorama import Fore
-from twisterlib.coverage import run_coverage
+from twisterlib.coverage import make_coverage_tool, run_coverage
 from twisterlib.environment import TwisterEnv
 from twisterlib.hardwaremap import HardwareMap
 from twisterlib.package import Artifacts
@@ -180,6 +180,10 @@ def main(options: argparse.Namespace, default_options: argparse.Namespace):
         tplan.create_build_dir_links()
 
     runner = TwisterRunner(tplan.instances, tplan.testsuites, env)
+    if options.coverage and not options.build_only and options.coverage_by_testsuite:
+        coverage_tool = make_coverage_tool(tplan, options)
+        runner.set_coverage_tool(coverage_tool)
+
     # FIXME: This is a workaround for the fact that the hardware map can be usng
     # the short name of the platform, while the testplan is using the full name.
     #
@@ -217,7 +221,10 @@ def main(options: argparse.Namespace, default_options: argparse.Namespace):
     coverage_completed = True
     if options.coverage:
         if not options.build_only:
-            coverage_completed = run_coverage(tplan, options)
+            if options.coverage_by_testsuite:
+                coverage_completed = coverage_tool.merge_coverage(options.outdir)
+            else:
+                coverage_completed = run_coverage(tplan, options)
         else:
             logger.info("Skipping coverage report generation due to --build-only.")
 
diff --git a/scripts/tests/twister/test_runner.py b/scripts/tests/twister/test_runner.py
index b5eec17b9dac86..5d71fe29f13b9e 100644
--- a/scripts/tests/twister/test_runner.py
+++ b/scripts/tests/twister/test_runner.py
@@ -69,7 +69,7 @@ def mocked_jobserver():
 
 @pytest.fixture
 def project_builder(mocked_instance, mocked_env, mocked_jobserver) -> ProjectBuilder:
-    project_builder = ProjectBuilder(mocked_instance, mocked_env, mocked_jobserver)
+    project_builder = ProjectBuilder(mocked_instance, mocked_env, mocked_jobserver, None)
     return project_builder
 
 
@@ -800,7 +800,7 @@ def mock_abspath(filename, *args, **kwargs):
     env_mock = mock.Mock()
     instance_mock = mock.Mock()
 
-    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver)
+    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver, None)
     with mock.patch('builtins.open', mock_open), \
          mock.patch('os.path.realpath', mock_realpath), \
          mock.patch('os.path.abspath', mock_abspath):
@@ -860,7 +860,7 @@ def mock_getsize(filename, *args, **kwargs):
     instance_mock.reason = instance_reason
     instance_mock.build_dir = 'build_dir'
 
-    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver)
+    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver, None)
 
     log_info_mock = mock.Mock()
 
@@ -1523,7 +1523,7 @@ def mock_determine_testcases(res):
     instance_mock.testsuite.harness = 'test'
     env_mock = mock.Mock()
 
-    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver)
+    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver, None)
     pb.options = mock.Mock()
     pb.options.coverage = options_coverage
     pb.options.prep_artifacts_for_testing = options_prep_artifacts
@@ -1665,7 +1665,7 @@ def test_projectbuilder_determine_testcases(
     instance_mock.testsuite.detailed_test_id = detailed_id
     instance_mock.compose_case_name = mock.Mock(side_effect=iter(added_tcs))
 
-    pb = ProjectBuilder(instance_mock, mocked_env, mocked_jobserver)
+    pb = ProjectBuilder(instance_mock, mocked_env, mocked_jobserver, None)
 
     with mock.patch('twisterlib.runner.ELFFile', elf_mock), \
          mock.patch('builtins.open', mock.mock_open()):
@@ -1735,7 +1735,7 @@ def test_projectbuilder_cleanup_artifacts(
     instance_mock.build_dir = tmpdir
     env_mock = mock.Mock()
 
-    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver)
+    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver, None)
     pb.options = mock.Mock(runtime_artifact_cleanup=runtime_artifact_cleanup)
 
     pb.cleanup_artifacts(additional_keep)
@@ -1757,7 +1757,7 @@ def test_projectbuilder_cleanup_device_testing_artifacts(
     instance_mock.build_dir = build_dir
     env_mock = mock.Mock()
 
-    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver)
+    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver, None)
     pb._get_binaries = mock.Mock(return_value=bins)
     pb.cleanup_artifacts = mock.Mock()
     pb._sanitize_files = mock.Mock()
@@ -1812,7 +1812,7 @@ def mock_get_domains(*args, **kwargs):
     instance_mock.platform.binaries = platform_binaries
     env_mock = mock.Mock()
 
-    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver)
+    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver, None)
     pb._get_binaries_from_runners = mock.Mock(return_value=runner_binaries)
 
     bins = pb._get_binaries()
@@ -1864,7 +1864,7 @@ def mock_exists(fname):
     instance_mock.build_dir = os.path.join('build', 'dir')
     env_mock = mock.Mock()
 
-    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver)
+    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver, None)
 
     with mock.patch('os.path.exists', mock_exists), \
          mock.patch('builtins.open', mock.mock_open()), \
@@ -1882,7 +1882,7 @@ def test_projectbuilder_sanitize_files(mocked_jobserver):
     instance_mock = mock.Mock()
     env_mock = mock.Mock()
 
-    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver)
+    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver, None)
     pb._sanitize_runners_file = mock.Mock()
     pb._sanitize_zephyr_base_from_files = mock.Mock()
 
@@ -1927,7 +1927,7 @@ def mock_exists(fname):
     instance_mock.build_dir = '/absolute/path/build_dir'
     env_mock = mock.Mock()
 
-    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver)
+    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver, None)
 
     with mock.patch('os.path.exists', mock_exists), \
          mock.patch('builtins.open',
@@ -1989,7 +1989,7 @@ def mock_open(fname, *args, **kwargs):
     instance_mock.build_dir = build_dir_path
     env_mock = mock.Mock()
 
-    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver)
+    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver, None)
 
     with mock.patch('os.path.exists', mock_exists), \
          mock.patch('builtins.open', mock_open), \
@@ -2091,7 +2091,7 @@ def test_projectbuilder_report_out(
                               [skip_mock_tc]
     env_mock = mock.Mock()
 
-    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver)
+    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver, None)
     pb.options.verbose = verbose
     pb.options.cmake_only = cmake_only
     pb.options.seed = 123
@@ -2204,7 +2204,7 @@ def test_projectbuilder_cmake():
     instance_mock.build_dir = os.path.join('build', 'dir')
     env_mock = mock.Mock()
 
-    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver)
+    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver, None)
     pb.build_dir = 'build_dir'
     pb.testsuite.extra_args = ['some', 'args']
     pb.testsuite.extra_conf_files = ['some', 'files1']
@@ -2235,7 +2235,7 @@ def test_projectbuilder_build(mocked_jobserver):
     instance_mock.testsuite.harness = 'test'
     env_mock = mock.Mock()
 
-    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver)
+    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver, None)
 
     pb.build_dir = 'build_dir'
     pb.run_build = mock.Mock(return_value={'dummy': 'dummy'})
@@ -2337,7 +2337,7 @@ def mock_harness(name):
     instance_mock.testsuite.harness = harness
     env_mock = mock.Mock()
 
-    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver)
+    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver, None)
     pb.options.extra_test_args = ['dummy_arg1', 'dummy_arg2']
     pb.duts = ['another dut']
     pb.options.seed = seed
@@ -2391,7 +2391,7 @@ def test_projectbuilder_gather_metrics(
     instance_mock.metrics = {}
     env_mock = mock.Mock()
 
-    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver)
+    pb = ProjectBuilder(instance_mock, env_mock, mocked_jobserver, None)
     pb.options.enable_size_report = enable_size_report
     pb.options.create_rom_ram_report = False
     pb.options.cmake_only = cmake_only